Xreal Lands $100 Million Boost, Poised to Challenge Smart Glass Giants
Smart glasses manufacturer Xreal Inc. has secured $100 million in new funding, according to its CEO, bolstering the company’s financial position as competition within the smart glasses market intensifies.
In a recent interview with Bloomberg Television, Xreal co-founder and CEO Chi Xu revealed the funding originated from “supply chain partners” and undisclosed additional investors. The company, currently valued at over $1 billion, unveiled two new smart glass models at the CES trade show in Las Vegas this week, including an enhanced entry-level option, and simultaneously announced an expanded partnership with Google’s Alphabet Inc.
Xreal and Google are jointly developing smart glasses powered by Google’s Android XR platform, slated for release in 2026. Xu confirmed the project remains on track, emphasizing a strategic division of labor: “We’re really good at building optical modules and building chips. Google, they’re really good at building AI and operating systems.” He believes that collaborative efforts, rather than a single company attempting full-stack development, will yield the most advanced smart glass hardware.
CES 2024 showcased a variety of new wearable technologies and AI-driven devices. Razer Inc. presented concept headphones, anticipated to launch this year, featuring integrated cameras for environmental analysis. Lenovo Group Ltd.’s Motorola division demonstrated a pendant necklace concept also equipped with a camera. Razer CEO Min-Liang Tan suggested that headphones might appeal to consumers who don’t typically wear glasses, while still providing an eye-level camera perspective.
Xu acknowledged a recent conversation with Tan, but remains confident that glasses represent the optimal form factor for smart glasses. He views the smart glasses market as a dynamic and open competition, stating, “This is a big enough market, and I don’t really see the form factor converging.”
Xreal faces increasing competition from major tech companies like Meta Platforms Inc., a current leader in the space with its AI-powered Ray-Ban smart glasses, including a premium $799 model released last year. Meta continues to explore consumer preferences regarding features and design.
Apple Inc. is also expected to enter the smart glasses market, potentially as early as this year, following challenges in gaining traction with its $3,499 Vision Pro headset, which received a minor update last fall. Reports indicate Apple has paused significant Vision Pro overhauls to prioritize the development of more accessible AI glasses similar to Meta’s offerings.
Xu critiqued the Vision Pro’s high cost and weight, asserting that Xreal can deliver a comparable experience – achieving “80% of that kind of experience” – in a lighter and significantly more affordable product.
